This business plan concerns the operation of an online fashion accessories trading company that will offer high end, luxury items. This business is intended to take advantage of the enormous growth opportunities in the U.S. fashion accessories sector which was valued at $30.29 billion as of 2007 (fashionproducts.com 2010). To penetrate the market, the company intends to operate a lean, but nimble management structure to handle the key operational areas of marketing, technical/website administration, and inventory management and delivery scheduling. Furthermore, the organization will employ the best people with ample experience and competence in the fashion accessories sector. From a marketing perspective, the proposed venture will position itself as a high-end, yet value laden fashion firm offering top-of-the line, yet competitively priced products in order to cut a large slice of the female fashion accessories market. The company will differentiate itself from other online fashion accessories sellers through it’s customize client service feature and competitively priced, yet high value products. From a financial standpoint, establishing the venture would entail a $10,000 investments. During its first year of operations, the online fashion accessories venture projected to generate net income amounting to $230,251. Consequently, the venture will yield total cash on hand worth $214,086, which forms the bulk of its total assets, during the first year of operations. Subsequently, the venture will amass total assets worth $240,885 and total capital of $240,385.
This business plan involves the establishment and operations of an online fashion accessories business. Fashion accessories can be defined as items used to complement the whole outfit and includes a wide variety of bags, purses, belts, shawls, scarves, ties, handkerchiefs, suspenders, caps, hats, fashion eyewear, and fashion jewelry (fashionproducts.com 2010). Fashion accessories are a huge industry, which generated $30.29 billion worth sales in the United States alone as of 2007. This was an 18.7 percent increase $25.51 billion sales value generated by the industry in 2000. Furthermore, unlike most products that do not sell well during economic downturns, fashion accessories have been known to be the most insulated from economic and global issues as women still change their bags, as often they want to regardless of sign of the times.
Given the rising demand in fashion accessories in the U.S. and the increasing use of the Internet to purchase fashion products, establishing and operating an online fashion accessories business can be a lucrative venture. Establishing this kind of business is also attractive considering that the venture can be established with only a minimal investment. A capital of approximately $10,000 is sufficient to start a small-scale fashion accessories business. Marketing Plan
From a marketing perspective, the key entry strategy for the proposed fashion accessories business is to formulate a marketing mix based on identifying the target market segments, and pursuing appropriate product and service development strategy; pricing strategy; distribution plan; and promotions strategies. Target Markets
The main target market for the proposed fashion accessories venture involves women of varying ages and income class. In terms of age, the proposed venture will target specific age ranges that show the most growth. In particular, according to the U.S. Census Bureau, the population of women between 2007 and 2010 shall increase by 6.2 million (fashion.infomat.com 2008). Consequently, the venture will also target specific women with specific income and behavioral nuances. This market is composed of women who are highly educated, demanding and discriminating on their choices of fashion products. However, another...